Why the TradFi takeover of crypto might not be the death blow analysts expect
Key takeaways
- When announcing E*Trade, Jed Finn, Morgan Stanley’s head of wealth management, suggested the move was more about dominance than control. “This is much bigger than trading crypto at a cheaper rate.
- In his X post last week, Balchunas echoed Finn’s sentiment, framing the Wall Street giant’s move as a “SHOTS FIRED” moment.
- He said that based on his knowledge of how Schwab works, it will “likely won't let this stand.
In the long run, this means that trading crypto will be cheaper, where the clear winners will be retail traders, while crypto exchanges see their margins significantly trimmed, potentially affecting the likes of Coinbase, who recently cited financial issues as a reason for to reduce its workforce by 14%.
When announcing E*Trade, Jed Finn, Morgan Stanley’s head of wealth management, suggested the move was more about dominance than control. “This is much bigger than trading crypto at a cheaper rate.
“In a way, the strategy is disintermediating the disintermediators.” He added: “It’s going to be very competitive in the next couple of years,” explaining the move is aimed at ensuring its 8.6 million clients remain within its banking system instead of resorting to other platforms as the demand for crypto increases.